Nifty will likely hover in the 9,000-10,500 range by year-end:ETMarkets.com survey

Umesh Mehta of Samco Securities said the recent rally might have created a ‘bubble’ in large caps. "It is not ‘market cap’ which enables a business to survive. The underlying business model and management of debt and cash flows are core to the survival of any company,” he said.

“From that perspective, we expect the market to correct as large-cap valuations will mean-revert when they get aligned with ground reality. Some companies have reached extremely high valuations. Nifty will likely hover in the 9,000-10,500 range by year-end,” he said.

Despite the recent tally, equity benchmarks Sensex and Nifty are down 15 percent each for the year, as the first half of 2020 draws close.

G Chokkalingam, Founder of Economics Research & Advisory, is betting on a better second half, as “many states have realised that it is not possible to resort to continuous lockdown, severely disrupting economic activities.”

He, however, said the market recovery in the first half, which pared Nifty’s year-to-date losses from about 38 percent fall on March 23 to just 18 percent now, has priced in the improved outlook for the second half.

“If there is a vaccine to prevent Covid-19 or an effective drug to cure the infection, the market would fully recover the 2020 losses and Sensex could be back at 42,000 by December-end. But any failure on this front could lead to at least 25 percent decline in Sensex for Calendar 2020,” he said.